CONFIDENTIAL

THIS IS A COPY THE ORIGINAL HAS BEEN

32

CLOSED UNDER

FOI EXEMPTION NO. 27 (1)

FOREIGN SECRETARY'S VISITS TO CHINA AND HONG KONG,

2-9 APRIL 1991

1.

Outcome of Peking visit disappointing. Main objective was to obtain better Chinese cooperation in run-up to 1997, a change of gear in our relations over Hong Kong. Foreign Secretary said before going that- we were not certain to achieve this objective but that it was worth trying.

2.

Talks in Peking on international and general bilateral

questions satisfactory. Chinese expressed recognition of efforts to improve bilateral relations. We recorded our concerns on human rights and Tibet.

3. Discussion of general principles on Hong Kong also satisfactory. Agreement to improve work of Joint Liaison Group. Chinese assured the Foreign Secretary that they did not wish to interfere in Hong Kong's day-to-day

administration before 1997. Li Peng said they had no other

objective than to maintain prosperity and stability before and after 1997 and to ensure a smooth transition of power. Chinese also made welcome public statements to this effect: no condominium, no control, no veto.

4.

...

Li

But we were unable to achieve a breakthrough on the new

airport for Hong Kong. Intensive official-level talks continued until 13 April; now adjourned for reflection. Peng supported the principle of a new airport and expressed optimism about our reaching an identity of views, but he declined to settle the issue; indeed he seems to have set an unrealistic bottom-line for Chinese negotiators. Chinese

remain intensely suspicious of British intentions and HKG's ability to manage prudently the airport project and Hong Kong's finances.

5.

HKG have moved a long way to provide reassurance.

CC1ABZ/2

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CONFIDENTIAL

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